The Infinite Banking Concept Fact Or Fiction?

Here are the historical facts of a case study regarding a practitioner of the Infinite Banking Concept as outlined in the book, Becoming Your Own Banker, by R. Nelson Nash.

A 45 year old male

Paid an annual premium of $30,000 into a participating whole life insurance policy which had a face value of $567,000

Within two weeks he borrowed $12,000 from the available $22,000 cash values inside his policy.

With this $12,000 he paid a tax bill he owed. Then he set up a repayment schedule to repay his policy loan.

His repayment schedule specified that he would pay back this loan over a course of 36 months with a monthly payment of $390. At the end of this time he had paid back $14,040 and now had this money available in addition to the $10,000 of cash value that did not loan from his cash values originally.

While he was paying back this loan he had also paid two more annual premiums of $30,000 each.

After paying the second premium of $30,000 his cash values were increased by $24,000.

After he paid the third premium, another $34,500 was added to his cash values.

Now he has $82,540 in cash values besides the $801,000 of face value. At this time, he has only paid $90,000 of premiums, so really his cost has simply been $208 per month or $7,460 in all.

So let us compare this to a term policy with $800,000 of face value. For this kind of face value he would have paid $323 every month for a total of $11,628 over this period of time.

This continues to improve because remember the $10,000 of cash value that this man left inside his policy when he took out the $12,000 loan?

He took this $10,000 and utilized it along with an extra $20,000 that he had in cash to buy a new automobile. The repayment schedule on this loan amounted to monthly payment of $667.33. So after this 36 month time frame when the guy is now 48 he owns an additional $24,024 along with the $82,540 which totals to $106,564. This means he has $16,564 more than in what he put into this process in premiums!

Summary:

This fellow now has $16,564 which he would not have had otherwise

He also has $801,000 of death benefit through his life insurance policy with technically no expense.

Now he has paid his tax bill of $12,000, plus he has a $30,000 car!

In two more years, he will have an additional $16,016 by maintaining the loan repayment schedule established on the automobile.

Finally, because he has been utilizing the Infinite Banking Concept and practiced Becoming Your Own Banker, his face value has gone up from $801,000 to $812,424.

Because he learned to control the banking equation, he has received, tax free, all the profits which would have gone to the banking and financial institutions.

This case study demonstrates firsthand that the “return of your money is always more important than the rate of return on your money.”

The Infinite Banking Concept is obviously a fact not fiction.

Tom McFie of Life Benefits, Inc. Is a widley sought financial coach. He helps people and business owners recover 30-35% of the money they are currently spending through the practice of the Infinite Banking Concept as described in the book Becoming Your Own Banker

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